He once called 88 times in a two-hour period. He repeatedly drove past her house in his black BMW. He sent rambling emails and countless text messages.Indiana Attorney General Greg Zoeller sued a California mortgage relief company, alleging violation of Indiana’s deceptive consumer sales act.
The lawsuit, filed this month in Allen Superior Court, is not the only one pending against Home Relief Services LLC, which is facing more legal troubles in California, including felony charges, according to court records.
Zoeller sued the company, as well as its legal affiliate, The Diener Law Firm, on behalf of both Allen and Elkhart county residents, according to court documents. The attorney general is asking a judge to enjoin the company from continuing to violate Indiana’s consumer protection laws, as well as order it to pay restitution.
Molly Butters, a spokeswoman for Zoeller’s office, said the Home Protection Unit saw a 700 percent increase in consumer complaints about foreclosure consultant services from 2008 to 2009.
Butters said foreclosure consultants are often predatory, finding homeowners in financial trouble after their bank files court documents to begin a foreclosure proceeding. Such records are public, and homeowners are often desperate for help when they receive a call, she said in an e-mail.
The lawsuit alleges the defendants advertised loan modifications within 90 days, but after they collected an up-front fee. In the case of the Allen County woman who used their services, Home Relief Services collected two payments from her checking account.
In both situations, the client did not receive any assistance in obtaining postponements of mortgage payments or a halt of foreclosure actions, according to court documents.
And Home Relief Services failed to give any of the money back, nor did it have a certificate of authority from the secretary of state’s office to do business in Indiana, according to court documents.
Defined as a credit services organization under Indiana law, Home Relief Services should have provided a $25,000 surety bond before doing business. It also should have provided each customer with a written statement detailing, in part, the services to be performed and their total cost, according to court documents.
The five-count lawsuit seeks payment of court costs and civil penalties, according to court documents.
California officials filed a similar lawsuit against the company, alleging Home Relief Services and its agents persuaded homeowners to stop dealing directly with their mortgage lenders and charged $4,000 in upfront fees with a promise of mortgage modification, according to the California attorney general’s Web site.
Christopher Lee Diener, Stefano Joseph Marrero and Terrence Green Sr., all named as defendants in the Indiana lawsuit because of their involvement with the company, have been charged in Orange County, Calif., with 98 felonies alleging grand theft by false pretense and conspiracy to commit grand theft by false pretense, according to court documents.
Anyone anticipating financial difficulty or who is having trouble making mortgage should contact the Indiana Foreclosure Prevention Network at 1-877-GET-HOPE or visit www.877gethope.com.
